Indonesia's primary energy supply mix is dominated by fossil fuels, particularly crude oil (47%), followed by coal (27%), natural gas (21%) and less than 5% from renewable resources such as hydropower (2.5%) and geothermal (1%) and biofuel (0.19%). The country has abundant renewable energy resources potential i.e. 29 GW geothermal, 75 GW hydropower, 50 GW bioenergy, 49 GW ocean power, solar insolation of 4.8 kWh/m2/day and wind speed 3-6 m/s. Indonesia is facing long-term challenges to its energy security system. Diversification of primary energy sources is therefore important. Based on the final draft (2015) of Indonesia's First Biennial Update Report (BUR) to UNFCCC, energy sector emits about 512 million tCO2eq or 32.2% of Indonesia's total GHGs emission. There is urgency in reducing level of emission in energy sector by involving all stakeholders. The Government of Indonesia responds to the issue by enacting notable regulations including Presidential Regulation No. 02/2015 on the Medium-term National Development Plan (RPJMN) 2015-2019 that targets to have 10% to 16% RE contribution in primary energy mix by 2019; 7.5 GW installed capacity of RE; energy saving of 12.7% from BAU 2014 as well as commit voluntarily in 2019 to reduce GHG emissions by 29% of Business as Usual emission trajectory of 2030 through national efforts or by 41% with international assistance. The guideline for implementation is govern by Presidential Decree No. 61/2011 on National Action Plan to reduce greenhouse gas emissions (RAN-GRK) and the Local Action Plan to reduce GHG emissions (RAD-GRK). The listed mitigation actions in the RAN-GRK and RAD-GRK are therefore considered as indicative Indonesia's Nationally Appropriate Mitigation Actions (NAMAs). The objective of “Market Transformation through Design and Implementation of Appropriate Mitigation Actions in the Energy Sector (MTRE3)” project is to support the design and implementation of appropriate climate change mitigation actions in the energy generation and energy end use sectors. It is intended to incrementally support Government of Indonesia to achieve the voluntary GHGs emission target by supporting effective implementation of RAN-GRK and RAD-GRK in Energy Sector. During 5 years of its implementation, the project will put in place enabling environment and removing barriers to sustainable market of renewable energy and energy efficiency. To achieve this purposes, the project will focus its interventions in renewable-based electricity generation and energy efficiency in commercial building interventions. The project will consist of 3 main components: (1) Climate change mitigation options for the RE-based energy generation and energy efficiency; (2) Market transformation through implementation of appropriate mitigation actions; (3) Measurement, Reporting and Verification (MRV) system and national registry for mitigation actions. The implementing partner of the project is the Directorate General of Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources. In parallel with the GEF funding of USD 8,025,000 for 5 years of implementation, the project will receive co- financing in the form of parallel activities from MEMR amounted of USD 8,000,000 and from UNDP core fund of USD 100,000.